Get A Jump On Retirement- Part 2
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Scott Bianchi
May 8, 2013, 12:35:10 PM5/8/13
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Please consider this free-reprint article written by:
Scott Bianchi
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Article Title: Get A Jump On Retirement- Part 2
Author: Scott Bianchi
Word Count: 636
Article URL: http://www.isnare.com/?aid=126145&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=126145
Easy Publish Tool: http://www.isnare.com/html.php?aid=126145
*********************** ARTICLE START ***********************
Welcome to the second article of my series. This article is about paying yourself first. You could probably find hundreds of articles on the internet about this very topic. It is a common theory used by many financial advisors. It is an important theory that is worth discussing.
The reasons for paying yourself first are easy to figure out, you get to build a savings account, you get in the habit of saving, you build your emergency fund, and more. In my opinion, the most important reason to pay yourself first is to force yourself to live below your means.
If you get in the habit of saving a percentage of your check every week, or whenever you happen to get paid, you will be on a good path. Of course, don�ｿｽt put 10% of your check in the bank and then go spend $2000 on a credit card, that defeats the purpose. Anyone that reads about personal finance probably knows the average American not only has no savings account but they have a negative savings. That simply means they spend more than they make. If they got injured and were out of work they�ｿｽd have trouble paying their bills for one month, never mind more. The average credit card debt in a household is nearing $10,000. The combination of no savings and increasing credit card debt is financial suicide.
When I used to work in an office people would come to me to discuss finances on occasion. Maybe they needed a new car and wanted to know if they should lease or buy, maybe they had questions about how to invest their 401(k) dollars. There were a number of reasons. But, we always got on the topic of their 401(k) regardless of the initial reason they came to me. I still can�ｿｽt believe how many people were not putting any money in their 401(k) or were putting the amount the company automatically set up for them, 3%. They had no idea what they were invested in, some didn�ｿｽt even know how to log into check their account and find out.
I would ask them how they didn�ｿｽt know these things or why they weren�ｿｽt putting in at least the 7% the company matched. Their response, �ｿｽI can�ｿｽt afford it.�ｿｽ I would then explain it didn�ｿｽt really change their check much because it was pre-tax, etc�ｿｽ The sad part is, if they couldn�ｿｽt afford putting money in their 401(k) you knew they weren�ｿｽt saving any money on their own. These people all made over $40,000 a year, most were above $50,000. They were not even paying themselves via their retirement savings.
I wonder what they will do in 30 years when they have a fraction of the retirement savings they could have had. The real question is, can they (or you) afford NOT TO save? If you live your life pay check to pay check when will you ever be able to retire? There will always be a nicer car to buy, a bigger house, better clothes, and fancier vacations. At some point you need to draw the line because if you don�ｿｽt you�ｿｽll have a massive mortgage payment when you hit 65 and you will never be able to afford to retire. After all, you hardly saved any money for your retirement while you were spending all this money.
If you are one of these people that spend every penny you have then at least buy yourself an annuity. You can make monthly payments to it and when you retire you will at least have a guaranteed income for as long as you live. Unless you are over fifty years old you can�ｿｽt even count on Social Security anymore.
About The Author: Scott Bianchi http://bianchiinsurance.com
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=126145
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
Message delivered directly to members of the group:
publish-the...@googlegroups.com
*****************************************************************
Please consider this free-reprint article written by:
Scott Bianchi
*****************************
IMPORTANT - Publication/Reprint Terms
- You have permission to publish this article electronically in free-only publications such as a website or an ezine as long as the bylines are included.
- You are not allowed to use this article for commercial purposes. The article should only be reprinted in a publicly accessible website and not in a members-only commercial site.
- You are not allowed to post/reprint this article in any sites/publications that contains or supports hate, violence, porn and warez or any indecent and illegal sites/publications.
- You are not allowed to use this article in UCE (Unsolicited Commercial Email) or SPAM. This article MUST be distributed in an opt-in email list only.
- If you distribute this article in an ezine or newsletter, we ask that you send a copy of the newsletter or ezine that contains the article to http://www.isnare.com/eta.php?aid=126145
- If you post this article in a website/forum/blog, ALL links MUST be set to hyperlinks and we ask that you send a copy of the URL where the article is posted to http://www.isnare.com/eta.php?aid=126145
- We request that you ask permission from the author if you want to publish this article in print.
The role of iSnare.com is only to distribute this article as part of its Article Distribution feature ( http://www.isnare.com/distribution.php ). iSnare.com does NOT own this article, please respect the author's copyright and this publication/reprint terms. If you do not agree to any of these terms, please do not reprint or publish this article.
*****************************
Article Title: Get A Jump On Retirement- Part 2
Author: Scott Bianchi
Word Count: 636
Article URL: http://www.isnare.com/?aid=126145&ca=Finances
Format: 64cpl
Contact The Author: http://www.isnare.com/eta.php?aid=126145
Easy Publish Tool: http://www.isnare.com/html.php?aid=126145
*********************** ARTICLE START ***********************
Welcome to the second article of my series. This article is about paying yourself first. You could probably find hundreds of articles on the internet about this very topic. It is a common theory used by many financial advisors. It is an important theory that is worth discussing.
The reasons for paying yourself first are easy to figure out, you get to build a savings account, you get in the habit of saving, you build your emergency fund, and more. In my opinion, the most important reason to pay yourself first is to force yourself to live below your means.
If you get in the habit of saving a percentage of your check every week, or whenever you happen to get paid, you will be on a good path. Of course, don�ｿｽt put 10% of your check in the bank and then go spend $2000 on a credit card, that defeats the purpose. Anyone that reads about personal finance probably knows the average American not only has no savings account but they have a negative savings. That simply means they spend more than they make. If they got injured and were out of work they�ｿｽd have trouble paying their bills for one month, never mind more. The average credit card debt in a household is nearing $10,000. The combination of no savings and increasing credit card debt is financial suicide.
When I used to work in an office people would come to me to discuss finances on occasion. Maybe they needed a new car and wanted to know if they should lease or buy, maybe they had questions about how to invest their 401(k) dollars. There were a number of reasons. But, we always got on the topic of their 401(k) regardless of the initial reason they came to me. I still can�ｿｽt believe how many people were not putting any money in their 401(k) or were putting the amount the company automatically set up for them, 3%. They had no idea what they were invested in, some didn�ｿｽt even know how to log into check their account and find out.
I would ask them how they didn�ｿｽt know these things or why they weren�ｿｽt putting in at least the 7% the company matched. Their response, �ｿｽI can�ｿｽt afford it.�ｿｽ I would then explain it didn�ｿｽt really change their check much because it was pre-tax, etc�ｿｽ The sad part is, if they couldn�ｿｽt afford putting money in their 401(k) you knew they weren�ｿｽt saving any money on their own. These people all made over $40,000 a year, most were above $50,000. They were not even paying themselves via their retirement savings.
I wonder what they will do in 30 years when they have a fraction of the retirement savings they could have had. The real question is, can they (or you) afford NOT TO save? If you live your life pay check to pay check when will you ever be able to retire? There will always be a nicer car to buy, a bigger house, better clothes, and fancier vacations. At some point you need to draw the line because if you don�ｿｽt you�ｿｽll have a massive mortgage payment when you hit 65 and you will never be able to afford to retire. After all, you hardly saved any money for your retirement while you were spending all this money.
If you are one of these people that spend every penny you have then at least buy yourself an annuity. You can make monthly payments to it and when you retire you will at least have a guaranteed income for as long as you live. Unless you are over fifty years old you can�ｿｽt even count on Social Security anymore.
About The Author: Scott Bianchi http://bianchiinsurance.com
Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=126145
*********************** ARTICLE END ***********************
- To distribute your articles go to http://www.isnare.com/distribution.php
- For more free-reprint articles go to http://www.isnare.com
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